Sri Lankan Rupee depreciates further
March 20, 2020 03:15 pm
The Sri Lankan Rupee has further depreciated against the US Dollar with the selling rate of the latter passing the 189 mark.
The current selling rate of the US Dollar is 189.87,according to the Central Bank of Sri Lanka (CBSL).
Accordingly, this is the first time in Sri Lankan history that the buying rate of a US dollar has exceeded Rs. 185.38 mark and selling rate of a US dollar has exceeded the 189.87 mark.
Meanwhile, the Central Bank of Sri Lanka yesterday introduced several measures to ease the pressure on the exchange rate and prevent financial market panic due to the COVID-19 pandemic.
Accordingly, licensed commercial banks and National Savings Bank were directed to adopt the following measures during the next three months, with immediate effect:
1. Suspend facilitating importation of all types motor vehicles, other than those excluded specifically under Banking Act Directions No.01 of 2020, under Letters of Credit
2. Suspend facilitating importation of non-essential goods specified in Banking Act Directions No.01 of 2020, under Letters of Credit, Documents Against Acceptance and Advance Payment
3. Suspend the purchase of Sri Lanka International Sovereign Bonds by licensed banks in Sri Lanka
In addition, Authorised Dealers of foreign exchange are allowed to issue foreign currency notes as travel allowance only up to a maximum of USD 5,000 (or its equivalent in other foreign currency).
The Central Bank said it will continue to monitor market developments and take further measures as required, while ensuring adequate liquidity in the market in order to facilitate smooth operations and sustain market confidence amidst the COVID-19 outbreak.
